What is Hole-in-One Insurance?
You’re hosting a charity golf tournament and offering an expensive prize should a golfer sink a hole-in-one.
It’s thrilling to sink a hole-in-one if you’re the golfer, but if you’re the organizer you will have to pay out the prize for the winner of a hole-in-one contest. It can be costly without hole-in-one insurance.
Hole-in-one insurance lets you enjoy being the host of the golf competition knowing that it covers the cost of the prize you’re offering.
What is hole-in-one insurance?
It’s also called hole-in-one contest coverage.
This type of insurance allows the golf event organizer or golf sponsor to offer large cash or luxury car hole-in-one prizes without the risk of a payout, should a hole-in-one occur.
For example, a golf event organizer can offer golfers the chance to win a $100,000 if a hole-in-one is made on a specific hole. Without hole-in-one insurance, you must provide the prize out of your own pocket as the golf tournament organizer. This type of insurance removes the risk from the golf tournament organizer and places it on the insurance company when you buy hole-in-one insurance.
It’s not unusual to have cash prizes up to $1 million offered at a hole-in-one contest.
Hole-in-one insurance is part of a broader industry called prize indemnity insurance, which is the coverage of any promotional event in which a large prize is offered.
How does hole-in-one insurance work?
The minimum yardage for the hole-in-one shot is usually 150 yards for men and 130 for women. You choose a golf hole to fit the required yardage and the amount of the prize.
A tournament official must be stationed at the selected hole during the insured round of play for the hole-in-one.
If a golfer sinks a hole-in-one, your hole-in-one insurance takes care of the prize you’re offering.
Advantages of hole-in-one insurance
You can offer luxury prizes or cash up to $1 million at your golf tournament without the risk of covering the cost if a golfer sinks a hole-in-one.
You can attract more golfers to your event by offering luxury prizes should a golfer sink a hole-in-one.
If your golf tournament is for charity, it can help you attract more participants, potentially meaning more revenue, donations, and awareness.
If you need to reschedule, your hole-in-one policy can be applied to the new date. You may also cancel your policy before the scheduled tournament date, if needed.
Disadvantages of hole-in-one insurance
If there's no winner at your event, you may feel the insurance coverage wasn’t necessary.
A specific number of witnesses may be required to the see the hole-in-one. Also, there’s typically the requirement that the golfers be amateur players.
How much does it cost?
Hole-in-one insurance depends on how many participants there will be in your golf tournament and the value of the grand prize that you’re offering. Another factor that helps determines the hole-in-one premium is the distance of the yardage required for the hole-in-one prize.
Who can buy it?
Companies and charities are examples of organizations that use hole-in-one insurance. It’s also used by schools, sports event planners, and celebrities.